Fast Charge Lithium Ion Battery Market Share

North America Market Analysis

North America in fast charge lithium ion battery market is expected to dominate around 38.6% revenue share by the end of 2037, owing to supportive government policies and rising EV adoption. The IRA 30D tax credit intends to fuel sales of EV and fast charging lithium ion batteries by incentivizing consumers to purchase EVs with tax break of up to USD 7,500. The guardrails around it are emblematic of the U.S. anchoring of the present nearshoring and reshoring climate through industrial policy. For credit eligibility, vehicles are required undergo final assembly in North America. Furthermore, to avail USD 3750 (half of the total credit) it is mandatory to have at least 50% of the battery components assembled or manufactured North America. This regulatory compliance is expected to reach 100% by 2029, thus, further strengthening the region’s self-reliance in manufacturing processes.   

In August 2023, the United States Department of Energy (DOE) introduced a fast-charge objective of 10 minutes to charge an electric vehicle battery.  Maryland Energy Innovation Institute (MEI) and the University of Maryland (UMD), together researched and advanced a single-phase mixed ion- and electron-conducting (MIEC) garnet material which integrated into their previously advanced 3D architecture, not only achieved the DOE Fast-charge goal for Li cycling, then exceeded it by a factor of 10.

Canada is rapidly developing in the fast charge lithium ion battery market due to supportive government policies and strategic investments.  In September 2023, Northvolt announced plans to build a lithium-ion battery gigafactory near Montreal named Northvolt Six, with an annual production capacity of up to 60GWh which is adequate to power approximately one million electric vehicles per year. The federal government has committed up to USD 4.6 billion in production incentives to support this initiative.

Asia Pacific Market Analysis

Asia Pacific is expected to experience a stable CAGR during the forecast period, with countries such as China, Japan, India, and South Korea leading in production and technological developments. In 2022, India produced 81% of the lithium-ion batteries that are used in indigenous electric vehicles while keeping with the government's vision of Atmanirbhar Bharat.  China has made significant steps in battery manufacturing and electric vehicle adoption. Companies such as Contemporary Amperex Technology Co. Limited (CATL) are advancing supercharging cells capable of charging EVs from 0% to 80% in just 10 minutes while addressing consumer concerns about range anxiety and long charging times.

The dominance of China in Lithium Iron Phosphate (LFP) battery technology, which is more cost-effective than nickel-cobalt alternatives and safer, while giving an edge over competitors such as South Korea's LG and Samsung. In 2022, China had more battery production capacity than combined with the rest of the world. With approx. 900 gigawatt-hours of manufacturing capacity or 77% of the worldwide total, China is home to six of the world’s 10 biggest battery manufacturers. Behind China’s battery dominance is its vertical integration across the rest of the EV supply chain, from mining the metals to manufacturing the EVs.

In April 2023, Log9, a company that produces batteries for electric cars, introduced India's first locally produced lithium-ion battery cell, which would be invented in one of its Bengaluru facilities. Automakers generally import battery cells from China or South Korea. The company strategies to start with 50 MWh of battery capacity to run up to 25,000 electric two-wheelers. Due to enhanced energy density, lithium-ion batteries can store more energy in a specified weight or volume. The decreasing weight and size are particularly important for portable electronic gadgets and electric cars as they increase efficiency and user convenience.